Question : On the basis of consumption function: C=180+0.6Y. Determine consumption at the income level of Rs.500.
Option 1: 500
Option 2: 480
Option 3: 300
Option 4: 600
Correct Answer: 480
Solution :
Question : On the basis of consumption function: C=20+0.6Y. Determine consumption at the income level of Rs.600.
Option 1: 280
Option 2: 300
Option 3: 380
Option 4: 400
Question : On the basis of consumption function: C=120+0.6Y. Determine saving at the income level of Rs.800.
Option 1: 100
Option 2: 150
Option 3: 250
Option 4: 200
Question : On the basis of consumption function: C=100+0.8Y. Determine saving at the income level of Rs.800.
Option 1: 80
Option 2: 60
Option 3: 100
Option 4: 120
Question : What is the value of MPC in the following consumption function
C= 200+0.90Y and also determinne consumption at income level of 500.
Option 1: 200, 600
Option 2: 0.10, 650
Option 3: 0.90, 650
Option 4: None of the above.
Question : The consumption expenditure and investment demand are Rs. 500 crores and Rs. 300 crore respectively when the income level is Rs. 1000 crores Calculate AD.
Option 2: 400
Option 3: 900
Option 4: 100
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